The Mackay West Shopping Centre has sold for $10.4 million in a sign of ongoing demand for convenience focused retail assets says Michael Hedger and Joe Tynan CBRE.

CBRE’s Michael Hedger and Joe Tynan negotiated the sale of the North Queensland property to a Brisbane-based private investor.

The result, which translates to an initial yield of 6.75%, reflects the strong trading performance of the 331 Bridge Road property, which is anchored by a SUPA IGA supermarket.

At a glance:

• Property: The Mackay West Shopping Centre
• Address: 331 Bridge Road Mackay Queensland 
• Sold price: $10.4M
• Yield: 6.75%
• WALE: 9.78 years 
• Anchor tenants: SUPA IGA on 20 year lease.
• Purchaser: Brisbane based private investor
• Agents: Michael Hedger and Joe Tynan CBRE

“The property was sold off market following a direct approach from an investor seeking an IGA secured retail investment,” Mr Hedger said.

“In the current low interest rate environment, we’re fielding strong demand for retail assets which offer a resilient income profile and have strong investment fundamentals. However, a limited number of quality properties are formally available.”

The Mackay West Shopping Centre is anchored by SUPA IGA on a 20-year lease, representing over 80% of the gross floor area.

The property includes four speciality stores, including BWS and Sullivan Nicolaides. It offers a 9.78-year WALE and a large land holding of 9,227sqm in Mackay’s central activity precinct.

“Regional locations with exposure to major surrounding infrastructure projects are attracting investors interest and this is converting to strong pricing outcomes for non-discretionary based retail assets,” Mr Tynan said.  

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“This has been further evidenced by CBRE’s recent sale of Stockland Northshore in Townsville.”